Eni crude business in Iran may lead to US sanctions

Eni's daily output in Iran averaged 3,000 bbl of oil equivalent in 2012, representing less than 1% of the company's total production. Eni said its refining and marketing division bought 498,000 metric tons of Iranian crude in 2012, paying the country's state oil company $396 million.

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By LIAM MOLONEY

Eni SpA, Italy's biggest oil and natural gas company by
volume, said Wednesday its activities in Iran may face US
sanctions against investments in the Islamic republic, and they
could be material.

Eni said, in its 2012 annual report, that it doesn't believe
its activities in Iran are sanctionable under current US
rules but notes it has no formal assurances from the US State
Department.

"If sanctions were imposed, their impact could be material
and adverse to Eni," said the Rome-based company.

Eni
has operated in Iran for several years as part of four service
contracts: South Pars, Darquain, Dorood and Balal. Eni
said all the projects have been completed with
the exception of Darquain, which is in the process of final
commissioning and is being handed over to the national Iranian
oil company.

The Italian company's projects in Iran are in the
cost-recovery phase, and it adds it has no plans to make
further capital expenditure in the country in future years.

Eni's daily output in Iran averaged 3,000 bbl of oil
equivalent in 2012, representing less than 1% of the company's
total production.

Eni said its refining and marketing division
bought 498,000 metric tons of Iranian crude in 2012, paying the
country's state oil company $396 million, less than the $742
million it paid for the 976,000 tons the year before.